diff --git a/server/src/com/cloud/hypervisor/XenServerGuru.java b/server/src/com/cloud/hypervisor/XenServerGuru.java
index 0702c4f9b42..a72e61bcf0d 100644
--- a/server/src/com/cloud/hypervisor/XenServerGuru.java
+++ b/server/src/com/cloud/hypervisor/XenServerGuru.java
@@ -46,7 +46,7 @@ public class XenServerGuru extends HypervisorGuruBase implements HypervisorGuru
     @Override
     public <T extends VirtualMachine> VirtualMachineTO implement(VirtualMachineProfile<T> vm) {
         BootloaderType bt = BootloaderType.PyGrub;
-        if (vm.getBootLoaderType() != null) {
+        if (vm.getBootLoaderType() == BootloaderType.CD) {
         	 bt = vm.getBootLoaderType();
         }
         VirtualMachineTO to = toVirtualMachineTO(vm);
diff --git a/server/src/com/cloud/vm/UserVmManagerImpl.java b/server/src/com/cloud/vm/UserVmManagerImpl.java
index 1289c1da0e0..5905171d162 100755
--- a/server/src/com/cloud/vm/UserVmManagerImpl.java
+++ b/server/src/com/cloud/vm/UserVmManagerImpl.java
@@ -2473,13 +2473,15 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
         if (owner.getState() == Account.State.disabled) {
             throw new PermissionDeniedException("The owner of " + vm + " is disabled: " + vm.getAccountId());
         }
-
-        VirtualMachineTemplate template = profile.getTemplate();
+        
         if (vm.getIsoId() != null) {
-            template = _templateDao.findById(vm.getIsoId());
-        }
-        if (template != null && template.getFormat() == ImageFormat.ISO && vm.getIsoId() != null) {
-            String isoPath = null;
+        	String isoPath = null;
+        	
+        	VirtualMachineTemplate template = _templateDao.findById(vm.getIsoId());
+        	if (template == null || template.getFormat() != ImageFormat.ISO) {
+        		throw new CloudRuntimeException("Can not find ISO in vm_template table for id " + vm.getIsoId());
+        	}
+        	
             Pair<String, String> isoPathPair = _storageMgr.getAbsoluteIsoPath(template.getId(), vm.getDataCenterId());
             if (isoPathPair == null) {
                 s_logger.warn("Couldn't get absolute iso path");
@@ -2487,6 +2489,7 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
             } else {
                 isoPath = isoPathPair.first();
             }
+ 
             if (template.isBootable()) {
                 profile.setBootLoaderType(BootloaderType.CD);
             }
@@ -2500,12 +2503,21 @@ public class UserVmManagerImpl implements UserVmManager, UserVmService, Manager
             iso.setDeviceId(3);
             profile.addDisk(iso);
         } else {
+        	VirtualMachineTemplate template = profile.getTemplate();
             /* create a iso placeholder */
             VolumeTO iso = new VolumeTO(profile.getId(), Volume.Type.ISO, StoragePoolType.ISO, null, template.getName(), null, null, 0, null);
             iso.setDeviceId(3);
             profile.addDisk(iso);
+            
+            if (template != null) {
+				if (template.isRequiresHvm()) {
+					profile.setBootLoaderType(BootloaderType.HVM);
+				} else {
+					profile.setBootLoaderType(BootloaderType.PyGrub);
+				}
+            }
         }
-
+        
         return true;
     }